"I am very pleased with our third quarter operating results and the
progress we made during the quarter towards meeting our full-year
financial and operational goals," said The New Home Company's Chief
Executive Officer Larry Webb. "Continued buyer demand in California
drove a solid monthly sales absorption rate of 2.5 sales per community,
which produced a 27% increase in net new home orders as compared to the
prior year and a 14% year-over-year increase in the dollar value of our
backlog. In addition, our homebuilding gross margin improved 80 basis
points over the prior year, and was up 190 basis points before interest
costs."

Mr. Webb continued, "The Company continues to execute on its strategy to
broaden its product portfolio and expects to open five new communities
during the fourth quarter with anticipated base pricing below $750,000,
which should provide the Company with a solid community count to start
fiscal 2018. Given the positive economic conditions surrounding the
housing submarkets in which we operate, coupled with the solid
foundation that our team has built, we believe that we are set-up for a
strong finish to the year and are well positioned for 2018."

Third Quarter 2017 Operating Results

Total revenues for the 2017 third quarter were $157.9 million, compared
to $177.9 million in the prior year period. Net income attributable to
the Company was $4.3 million, or $0.21 per diluted share, compared to
$5.5 million, or $0.27 per diluted share, in the prior year period. The
year-over-year decrease in net income was primarily attributable to an
8% decline in home sales revenue, a 120 basis point increase in selling
and marketing expenses as a percentage of home sales revenues, and
decreases in fee building revenues and joint venture income. These items
were partially offset by an 80 basis point improvement in homebuilding
gross margin to 16.3%.

Wholly Owned Projects

Home sales revenue for the 2017 third quarter decreased 8% to $114.6
million, compared to $125.1 million in the prior year period. The
decrease in home sales revenue was driven primarily by a 35% decrease in
the average selling price of homes delivered to $1.4 million, which was
partially offset by a 40% increase in deliveries. The decrease in
average selling price was primarily due to a product mix shift,
including a higher proportion of deliveries from our Northern California
operations, where the average selling price was $781,000. Additionally,
Southern California's 2017 third quarter average selling price decreased
31% to $2.0 million due to contributions from communities with lower
price points, consistent with the Company's strategic broadening of its
product portfolio.

Gross margin from home sales for the 2017 third quarter was 16.3% versus
15.5% in the prior year period. The 80 basis point improvement in home
sales gross margin was primarily due to a change in mix, including more
volume from higher-margin communities located in Santa Clara in the Bay
Area and in Crystal Cove in Newport Coast, CA. Adjusted gross margin
from home sales for the 2017 third quarter, which excludes interest in
cost of home sales and inventory impairments, was 18.4%* compared to
16.5%* in the prior year period.

Our SG&A expense ratio as a percentage of home sales revenue for the
2017 third quarter was 11.6% versus 10.0% in the prior year period. The
increase in the SG&A rate was primarily attributable to higher selling
and marketing costs, driven by an increase in spend related to the ramp
up of new communities, higher co-broker commissions and model operating
costs, and to a lesser extent, lower home sales revenue.

Net new home orders for the 2017 third quarter were up 27% to 81 homes,
compared to 64 homes in the prior year period. The Company's monthly
sales absorption pace was up 47% during the 2017 third quarter to 2.5
sales per average selling community, compared to 1.7 in the prior year
period. The improvement in the absorption rate was driven by solid order
activity in both Southern and Northern California. As a result of
increased sales activity and the timing of opening new communities, our
quarter end selling communities were down 8% from the prior year, ending
the 2017 third quarter with 12 active communities compared to 13 at the
end of the prior year period. This slight decline was consistent with
our expectations, and the Company anticipates opening five new
communities in the 2017 fourth quarter.

The dollar value of the Company's wholly owned backlog at the end of the
2017 third quarter was up 14% year-over-year to $330.6 million and
totaled 182 homes, compared to $290.2 million and 129 homes in the prior
year period. The increase in backlog dollar value primarily related to
the increase in net new home orders, which was partially offset by a 19%
decline in average selling price in backlog. The decrease in backlog
average selling price is consistent with the Company's strategy to
expand its product portfolio to include more affordable price points.

Fee Building Projects

Fee building revenue for the 2017 third quarter decreased 18% to $43.3
million, compared to $52.8 million in the prior year period. The
decrease was primarily due to a decrease in fee building construction
activity. Our fee building gross margin was $1.5 million, or 3.5%,
compared to $1.9 million, or 3.7%, in the prior year period. Management
fees from joint ventures were $1.3 million during the 2017 third quarter
compared to $1.5 million in the prior year period.

Unconsolidated Joint Ventures (JVs)

The Company's share of joint venture income for the 2017 third quarter
was $0.1 million, compared to $0.5 million in the prior year period.
This decrease was due to lower joint venture net income due to a
decrease in joint venture lot sales and lower gross margins from joint
venture home sales. The decrease in joint venture gross margins was due
to increased deliveries in the 2017 third quarter from four lower-margin
Sacramento communities. In the 2016 third quarter, joint venture gross
margins were higher due to higher-margin deliveries from our Orchard
Park project in the Bay Area, which delivered its last home in the 2017
first quarter. The following sets forth supplemental information about
the Company's joint ventures. Such information is not included in the
Company's financial data for GAAP purposes but is provided for
informational purposes.

Joint venture net income totaled $0.4 million, compared to $2.4 million
in the prior year period. Joint venture home sales revenues totaled
$45.2 million, compared to $19.7 million in the prior year period, while
joint venture land sales revenues totaled $0.6 million for the 2017
third quarter, compared to $14.8 million in the prior year period.

At the end of both the 2017 and 2016 third quarter, our joint ventures
had eight active selling communities. Net new home orders from joint
ventures for the 2017 third quarter increased 23% to 43 homes as
compared to 35 homes in the prior year period. The dollar value of homes
in backlog from unconsolidated joint ventures at the end of the 2017
third quarter was $69.8 million from 83 homes, compared to $85.3 million
from 88 homes in the prior year period.

Balance Sheet and Liquidity

As of September 30, 2017, the Company had real estate inventories
totaling $478.5 million, of which $362.1 million represented
work-in-process and completed homes (including models), $75.2 million in
land and land under development, and $41.3 million in land deposits and
pre-acquisition costs. The Company owned or controlled 2,203 lots
through its wholly owned operations (excluding fee building and joint
venture lots), of which 1,356 lots, or 62%, were controlled or under
option. The Company ended the 2017 third quarter with $62.4 million in
cash and cash equivalents and had no borrowings outstanding under its
$200.0 million revolving credit facility. The Company ended the 2017
third quarter with $318.5 million in debt outstanding (net of
unamortized discount, premium and debt issuance costs), a
debt-to-capital ratio of 55.7%, and a net debt-to-capital ratio of
50.3%*.

Guidance

For the 2017 fourth quarter, the Company estimates the following:

Home sales revenue of $260 - $280 million

Fee building revenue of $20 - $30 million

Income from unconsolidated joint ventures of $1 - $1.5 million

For the full year 2017, the Company anticipates the following:

Home sales revenue of $540 - $560 million

Fee building revenue of $165 - $175 million

Income from unconsolidated joint ventures of $2 million

Wholly owned active year-end community count of 17

Joint venture active year-end community count of 7

Conference Call Details

The Company will host a conference call and webcast for investors and
other interested parties beginning at 12:00 p.m. Eastern Time on Friday,
October 27, 2017 to review third quarter results, discuss recent events
and results, and discuss the Company's full year and certain quarterly
guidance for 2017. We will also conduct a question-and-answer period.
The conference call will be available in the Investors section of the
Company's website at www.NWHM.com.
To listen to the broadcast live, go to the site approximately 15 minutes
prior to the scheduled start time in order to register, download and
install any necessary audio software. To participate in the telephone
conference call, dial 1-877-407-0789 (domestic) or 1-201-689-8562
(international) at least five minutes prior to the start time. Replays
of the conference call will be available through November 27, 2017 and
can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671
(international) and entering the pass code 13671776.

About The New Home Company

NWHM is a new generation homebuilder focused on the design, construction
and sale of innovative and consumer-driven homes in major metropolitan
areas within select growth markets in California and Arizona, including
coastal Southern California, the San Francisco Bay area, metro
Sacramento and the greater Phoenix area. The Company is headquartered in
Aliso Viejo, California. For more information about the Company and its
new home developments, please visit the Company's website at www.NWHM.com.

* Adjusted homebuilding gross margin percentage and net debt-to-capital
ratio are non-GAAP measures. A reconciliation of the appropriate GAAP
measure to each of these measures is included in the accompanying
financial data. See "Reconciliation of Non-GAAP Financial Measures."

Forward-Looking Statements

Various statements contained in this press release, including those that
express a belief, anticipation, expectation or intention, as well as
those that are not statements of historical fact, are forward-looking
statements. These forward-looking statements may include projections and
estimates concerning the timing and success of specific projects,
community counts and openings and our future production, our ability to
execute our strategic growth objectives, gross margins, revenues,
projected results, income, earnings per share and capital spending. Our
forward-looking statements are generally accompanied by words such as
"estimate," "project," "predict," "believe," "expect," "intend,"
"anticipate," "potential," "plan," "goal," "will," "guidance," or other
words that convey the uncertainty of future events or outcomes. The
forward-looking statements in this press release speak only as of the
date of this release, and we disclaim any obligation to update these
statements unless required by law, and we caution you not to rely on
them unduly. We have based these forward-looking statements on our
current expectations and assumptions about future events. While our
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies and
uncertainties, most of which are difficult to predict and many of which
are beyond our control. The following factors, among others, may cause
our actual results, performance or achievements to differ materially
from any future results, performance or achievements expressed or
implied by these forward-looking statements: economic changes either
nationally or in the markets in which we operate, including declines in
employment, volatility of mortgage interest rates and inflation; a
downturn in the homebuilding industry; changes in sales conditions,
including home prices, in the markets where we build homes, volatility
and uncertainty in the credit markets and broader financial markets; our
business and investment strategy; availability of land to acquire and
our ability to acquire such land on favorable terms or at all; our
liquidity and availability, terms and deployment of capital; shortages
of or increased prices for labor, land or raw materials used in housing
construction; delays in land development or home construction resulting
from adverse weather conditions or other events outside our control;
issues concerning our joint venture partnerships; the cost and
availability of insurance and surety bonds; changes in, or the failure
or inability to comply with, governmental laws and regulations; the
timing of receipt of regulatory approvals and the opening of projects;
the degree and nature of competition; our leverage and debt service
obligations; the impact of recent accounting standards; restrictive
covenants relating to our operations in our current of future financing
arrangements; availability of qualified personnel and our ability to
retain our key personnel; and additional factors discussed under the
sections captioned "Risk Factors" included in our annual report and
other reports filed with the Securities and Exchange Commission. The
Company reserves the right to make such updates from time to time by
press release, periodic report or other method of public disclosure
without the need for specific reference to this press release. No such
update shall be deemed to indicate that other statements not addressed
by such update remain correct or create an obligation to provide any
other updates.

Common stock, $0.01 par value, 500,000,000 shares authorized,
20,876,623 and 20,712,166, shares issued and outstanding as of
September 30, 2017 and December 31, 2016, respectively

209

207

Additional paid-in capital

198,757

197,161

Retained earnings

53,836

47,155

Total stockholders' equity

252,802

244,523

Noncontrolling interest in subsidiary

91

101

Total equity

252,893

244,624

Total liabilities and equity

$

638,107

$

419,136

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended

September 30,

2017

2016

(Dollars in thousands)

Operating activities:

Net income

$

6,671

$

7,152

Adjustments to reconcile net income to net cash used in operating
activities:

Deferred taxes

(54

)

1,181

Amortization of equity based compensation

2,086

2,602

Excess income tax provision from stock-based compensation

—

97

Inventory impairments

1,300

—

Distributions of earnings from unconsolidated joint ventures

1,588

1,931

Equity in net income of unconsolidated joint ventures

(606

)

(4,428

)

Deferred profit from unconsolidated joint ventures

560

541

Depreciation

344

381

Abandoned project costs

238

498

Net changes in operating assets and liabilities:

Restricted cash

372

11

Contracts and accounts receivable

13,448

2,717

Due from affiliates

504

91

Real estate inventories

(179,607

)

(159,778

)

Other assets

(3,766

)

(4,894

)

Accounts payable

2,859

11,927

Accrued expenses and other liabilities

(6,257

)

(6,430

)

Due to affiliates

—

(293

)

Net cash used in operating activities

(160,320

)

(146,694

)

Investing activities:

Purchases of property and equipment

(145

)

(379

)

Cash assumed from joint venture at consolidation

995

2,009

Contributions and advances to unconsolidated joint ventures

(21,296

)

(7,707

)

Distributions of capital and repayment of advances to unconsolidated
joint ventures

13,650

13,977

Interest collected on advances to unconsolidated joint ventures

468

—

Net cash provided by (used in) investing activities

(6,328

)

7,900

Financing activities:

Borrowings from credit facility

72,000

193,000

Repayments of credit facility

(190,000

)

(38,000

)

Proceeds from senior notes

324,465

—

Borrowings from other notes payable

—

343

Repayments of other notes payable

—

(15,636

)

Payment of debt issuance costs

(7,382

)

(1,064

)

Cash distributions to noncontrolling interest in subsidiary

—

(725

)

Minimum tax withholding paid on behalf of employees for stock awards

(590

)

(647

)

Excess income tax provision from stock-based compensation

—

(97

)

Proceeds from exercise of stock options

102

—

Net cash provided by financing activities

198,595

137,174

Net increase (decrease) in cash and cash equivalents

31,947

(1,620

)

Cash and cash equivalents – beginning of period

30,496

45,874

Cash and cash equivalents – end of period

$

62,443

$

44,254

KEY FINANCIAL AND OPERATING DATA(Dollars in thousands)(Unaudited)

New Home Deliveries:

Three Months Ended September 30,

2017

2016

% Change

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Southern California

39

$

79,494

$

2,038

36

$

105,789

$

2,939

8

%

(25

)%

(31

)%

Northern California

45

35,128

781

24

19,353

806

88

%

82

%

(3

)%

Total

84

$

114,622

$

1,365

60

$

125,142

$

2,086

40

%

(8

)%

(35

)%

Nine Months Ended September 30,

2017

2016

% Change

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Southern California

88

$

190,696

$

2,167

67

$

189,996

$

2,836

31

%

—

%

(24

)%

Northern California

114

90,261

792

64

56,285

879

78

%

60

%

(10

)%

Total

202

$

280,957

$

1,391

131

$

246,281

$

1,880

54

%

14

%

(26

)%

Net New Home Orders:

Three Months Ended September 30,

Nine Months Ended September 30,

2017

2016

% Change

2017

2016

% Change

Southern California

43

39

10

%

143

105

36

%

Northern California

38

25

52

%

162

79

105

%

81

64

27

%

305

184

66

%

Active Communities:

As of September 30,

2017

2016

% Change

Southern California

7

8

(13

)%

Northern California

5

5

—

%

12

13

(8

)%

Backlog:

As of September 30,

2017

2016

% Change

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Southern California

103

$

274,037

$

2,661

92

$

262,224

$

2,850

12

%

5

%

(7

)%

Northern California

79

56,602

716

37

27,971

756

114

%

102

%

(5

)%

Total

182

$

330,639

$

1,817

129

$

290,195

$

2,250

41

%

14

%

(19

)%

Lots Owned and Controlled:

September 30,

2017

2016

% Change

Lots Owned

Southern California

579

287

102

%

Northern California

268

339

(21

)%

Total

847

626

35

%

Lots Controlled(1)

Southern California

348

693

(50

)%

Northern California

669

265

152

%

Arizona

339

—

NA

Total

1,356

958

42

%

Lots Owned and Controlled - Wholly Owned

2,203

1,584

39

%

Fee Building(2)

815

981

(17

)%

Total Lots Owned and Controlled

3,018

2,565

18

%

(1)

Includes lots that we control under purchase and sale agreements or
option agreements subject to customary conditions and have not yet
closed. There can be no assurance that such acquisitions will occur.

(2)

Lots owned by third-party property owners for which we perform
construction services.

Other Financial Data:

Nine Months Ended September 30,

2017

2016

Interest incurred

$

15,217

$

5,243

Adjusted EBITDA(1)

$

21,508

$

15,871

Adjusted EBITDA margin percentage (1)

5.0

%

4.3

%

LTM(2) Ended September 30,

2017

2016

Interest incurred

$

17,458

$

6,670

Adjusted EBITDA(1)

$

48,781

$

41,766

Adjusted EBITDA margin percentage (1)

6.5

%

7.4

%

Ratio of Adjusted EBITDA to total interest incurred (1)

2.8x

6.3x

September 30,

December 31,

2017

2016

Ratio of debt-to-capital

55.7

%

32.5

%

Ratio of net debt-to-capital(1)

50.3

%

26.2

%

Ratio of debt to LTM(2) Adjusted EBITDA(1)

6.5x

2.7x

(1)

Adjusted EBITDA, Adjusted EBITDA margin percentage, ratio of
Adjusted EBITDA to total interest incurred, ratio of net
debt-to-capital, and ratio of debt to LTM Adjusted EBITDA are
non-GAAP measures. Please see "Reconciliation of Non-GAAP Financial
Measures" for a reconciliation of each of these measures to the
appropriate GAAP measure.

(2)

"LTM" indicates amounts for the trailing 12 months.

KEY FINANCIAL AND OPERATING DATA - UNCONSOLIDATED JOINT VENTURES

(Dollars in thousands)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2017

2016

% Change

2017

2016

% Change

Financial Data - Unconsolidated Joint Ventures:

Home sales revenue

$

45,242

$

19,659

130

%

$

104,628

$

105,558

(1

)%

Land sales revenue

$

647

$

14,805

(96

)%

3,052

40,967

(93

)%

Total revenue

$

45,889

$

34,464

33

%

$

107,680

$

146,525

(27

)%

Net income (loss)

$

426

$

2,417

(82

)%

$

(1,092

)

$

16,378

(107

)%

Operating Data - Unconsolidated Joint Ventures:

New home orders

43

35

23

%

136

111

23

%

New homes delivered

50

23

117

%

115

123

(7

)%

Average selling price of homes delivered

$

905

$

855

6

%

$

910

$

858

6

%

Selling communities at end of period

8

8

—

%

Backlog homes (dollar value)

$

69,834

$

85,317

(18

)%

Backlog (homes)

83

88

(6

)%

Average sales price of backlog

$

841

$

970

(13

)%

Homebuilding lots owned and controlled

398

661

(40

)%

Land development lots owned and controlled

2,415

2,415

—

%

Total lots owned and controlled

2,813

3,076

(9

)%

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Unaudited)

In this earnings release, we utilize certain non-GAAP financial measures
as defined by the Securities and Exchange Commission. We present these
measures because we believe they, and similar measures, are useful to
management and investors in evaluating the Company's operating
performance and financing structure. We also believe these measures
facilitate the comparison of our operating performance and financing
structure with other companies in our industry. Because these measures
are not calculated in accordance with Generally Accepted Accounting
Principles ("GAAP"), they may not be comparable to other similarly
titled measures of other companies and should not be considered in
isolation or as a substitute for, or superior to, financial measures
prepared in accordance with GAAP.

The following table reconciles homebuilding gross margin percentage as
reported and prepared in accordance with GAAP, to the non-GAAP measures
homebuilding gross margin before impairments and adjusted homebuilding
gross margin percentages. We believe this information is meaningful, as
it isolates the impact home sales impairments and leverage have on
homebuilding gross margin and provides investors better comparisons with
our competitors, who adjust gross margins in a similar fashion.

Three Months Ended September 30,

Nine Months Ended September 30,

2017

%

2016

%

2017

%

2016

%

(Dollars in thousands)

Home sales revenue

$

114,622

100.0

%

$

125,142

100.0

%

$

280,957

100.0

%

$

246,281

100.0

%

Cost of home sales

95,992

83.7

%

105,799

84.5

%

239,845

85.4

%

211,859

86.0

%

Homebuilding gross margin

18,630

16.3

%

19,343

15.5

%

41,112

14.6

%

34,422

14.0

%

Add: Home sales impairments

—

—

%

—

—

%

1,300

0.5

%

—

—

%

Homebuilding gross margin before impairments

18,630

16.3

%

19,343

15.5

%

42,412

15.1

%

34,422

14.0

%

Add: Interest in cost of home sales

2,448

2.1

%

1,306

1.0

%

5,719

2.0

%

3,017

1.2

%

Adjusted homebuilding gross margin

$

21,078

18.4

%

$

20,649

16.5

%

$

48,131

17.1

%

$

37,439

15.2

%

Adjusted EBITDA, Adjusted EBITDA margin percentage, the ratio of
Adjusted EBITDA to total interest incurred, and the ratio of debt to
Adjusted EBITDA are non-GAAP measures. Adjusted EBITDA means net income
(loss) (plus cash distributions of income from unconsolidated joint
ventures) before (a) income taxes, (b) interest expense, (c)
amortization of previously capitalized interest included in cost of
sales or other expense, (d) non-cash impairment charges and abandoned
project costs, (e) gain (loss) on extinguishment of debt, (f)
depreciation and amortization, (g) amortization of equity-based
compensation, and (h) income (loss) from unconsolidated joint ventures.
Adjusted EBITDA margin percentage is calculated by dividing Adjusted
EBITDA by total revenue for a given period. The ratio of Adjusted EBITDA
to total interest incurred is calculated by dividing Adjusted EBITDA by
total interest incurred for a given period. The ratio of debt to
Adjusted EBITDA is calculated by dividing debt at the period end by
Adjusted EBITDA for a given period. Other companies may calculate
Adjusted EBITDA differently. Management believes that Adjusted EBITDA
assists investors in understanding and comparing the operating
characteristics of homebuilding activities by eliminating many of the
differences in companies' respective capitalization, interest costs, tax
position and level of impairments. Due to the significance of the GAAP
components excluded, Adjusted EBITDA should not be considered in
isolation or as an alternative to net income, cash flows from operations
or any other performance measure prescribed by GAAP. A reconciliation of
net income to Adjusted EBITDA, Adjusted EBITDA margin percentage, the
ratio of Adjusted EBITDA to total interest incurred, and the ratio of
debt to Adjusted EBITDA is provided in the following table.

Nine Months Ended

LTM(1) Ended

Twelve

Months Ended

September 30,

September 30,

December 31,

2017

2016

2017

2016

2016

(Dollars in thousands)

Net income

$

6,671

$

7,152

$

20,445

$

19,365

$

20,926

Add:

Interest amortized to cost of sales and other expense

5,719

3,017

8,033

4,698

5,331

Provision for income taxes

4,168

4,718

12,474

11,976

13,024

Depreciation and amortization

344

381

474

505

511

Amortization of equity-based compensation

2,086

2,602

2,955

3,761

3,471

Cash distributions of income from unconsolidated joint ventures

1,588

1,931

3,399

9,894

3,742

Non-cash impairments and abandonments

1,538

498

5,120

582

4,080

Less:

Gain from notes payable principal reduction

—

—

(250

)

—

(250

)

Equity in income of unconsolidated joint ventures

(606

)

(4,428

)

(3,869

)

(9,015

)

(7,691

)

Adjusted EBITDA

$

21,508

$

15,871

$

48,781

$

41,766

$

43,144

Total Revenue

$

427,064

$

372,007

$

749,513

$

566,633

$

694,456

Adjusted EBITDA margin percentage

5.0

%

4.3

%

6.5

%

7.4

%

6.2

%

Interest incurred

$

15,217

$

5,243

$

17,458

$

6,670

$

7,484

Ratio of Adjusted EBITDA to total interest incurred

2.8x

6.3x

5.8x

Total debt at period end

318,452

233,924

118,000

Ratio of debt to LTM(1) Adjusted EBITDA

6.5x

5.6x

2.7x

(1)

"LTM" indicates amounts for the trailing 12 months.

The following table reconciles the Company's ratio of debt-to-capital to
the non-GAAP ratio of net debt-to-capital. We believe that the ratio of
net debt-to-capital is a relevant financial measure for management and
investors to understand the leverage employed in our operations and as
an indicator of the Company's ability to obtain financing.

September 30,

December 31,

2017

2016

(Dollars in thousands)

Total debt, net

$

318,452

$

118,000

Equity, exclusive of noncontrolling interest

252,802

244,523

Total capital

$

571,254

$

362,523

Ratio of debt-to-capital(1)

55.7

%

32.5

%

Total debt, net

$

318,452

$

118,000

Less: cash, cash equivalents and restricted cash

62,656

31,081

Net debt

255,796

86,919

Equity, exclusive of noncontrolling interest

252,802

244,523

Total capital

$

508,598

$

331,442

Ratio of net debt-to-capital(2)

50.3

%

26.2

%

(1)

The ratio of debt-to-capital is computed as the quotient obtained by
dividing total debt, net by the sum of total debt plus equity,
exclusive of noncontrolling interest.

(2)

The ratio of net debt-to-capital is computed as the quotient
obtained by dividing net debt (which is total debt, net less cash to
the extent necessary to reduce the debt balance to zero) by total
capital, exclusive of noncontrolling interest. The most directly
comparable GAAP financial measure is the ratio of debt-to-capital.
We believe the ratio of net debt-to-capital is a relevant financial
measure for investors to understand the leverage employed in our
operations and as an indicator of our ability to obtain financing.
We believe that by deducting our cash from our notes payable, we
provide a measure of our indebtedness that takes into account our
cash liquidity. We believe this provides useful information as the
ratio of debt-to-capital does not take into account our liquidity
and we believe that the ratio net of cash provides supplemental
information by which our financial position may be considered.
Investors may also find this to be helpful when comparing our
leverage to the leverage of our competitors that present similar
information. See the table above reconciling this non-GAAP financial
measure to the ratio of debt-to-capital.